6,900           Supplies   4,800           Land   67,000           Accounts Payable         $ 4,900   Common Stock           82,000   Retained Earnings

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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On January 1, Year 1, the general ledger of a company includes the following account balances:

 

Accounts Debit   Credit
Cash $ 25,500          
Accounts Receivable   6,900          
Supplies   4,800          
Land   67,000          
Accounts Payable         $ 4,900  
Common Stock           82,000  
Retained Earnings           17,300  
Totals $ 104,200     $ 104,200  
 

 

During January Year 1, the following transactions occur:

 

January   2   Purchase rental space for one year in advance, $11,100 ($925/month).
January   9   Purchase additional supplies on account, $5,200.
January   13   Provide services to customers on account, $27,200.
January   17   Receive cash in advance from customers for services to be provided in the future, $5,400.
January   20   Pay cash for salaries, $13,200.
January   22   Receive cash on accounts receivable, $25,800.
January   29   Pay cash on accounts payable, $5,700.

 

The following information is available on January 31.

  • Rent for the month of January has expired.
  • Supplies remaining at the end of January total $4,500.
  • By the end of January, $4,475 of services has been provided to customers who paid in advance on January 17.
  • Unpaid salaries at the end of January are $4,610.
Journal entry worksheet
<
1
6
7
8
9
Record the entry to close the expense accounts.
Note: Enter debits before credits.
Date
Account Title
Jan 31
Retained Earnings
Salaries Expense
Rent Expense
Supplies Expense
Record entry
Clear entry
10
11
Debit
12
13
>
Credit
View general journal
Transcribed Image Text:Journal entry worksheet < 1 6 7 8 9 Record the entry to close the expense accounts. Note: Enter debits before credits. Date Account Title Jan 31 Retained Earnings Salaries Expense Rent Expense Supplies Expense Record entry Clear entry 10 11 Debit 12 13 > Credit View general journal
Journal entry worksheet
1 ..... 6 7
8
9
Record the entry to close the revenue accounts.
Note: Enter debits before credits.
Date
Account Title
Jan 31 Service Revenue
Retained Earnings
Record entry
Clear entry
10
11
Debit
12
13
Credit
View general journal
Transcribed Image Text:Journal entry worksheet 1 ..... 6 7 8 9 Record the entry to close the revenue accounts. Note: Enter debits before credits. Date Account Title Jan 31 Service Revenue Retained Earnings Record entry Clear entry 10 11 Debit 12 13 Credit View general journal
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